Brazilian, Mexican stocks cheer jobs, inflation data

SAN FRANCISCO (MarketWatch) -- Brazilian and Mexican equity markets closed higher Friday, rising in tandem with U.S. stocks as investors celebrated reassuring February U.S. payroll data and mild inflation figures at home.

The main Sao Paulo index ended 668 points, or 1.5%, higher at 44,133.42. Traders noted local shares continued a rally seen Thursday, taking strength early in the session from solid February U.S. payroll data.

The U.S. Labor Department reported that job openings rose by 97,000 during the month, nearly meeting analyst estimates of a figure around 100,000. The data was interpreted as a sign that the worst of overseas volatility seen over recent weeks may come to an end and that markets will take a steadier path going forward.

Adding to the positive U.S. data, local inflation data also gave investors reason for encouragement.

Brazil's IBGE statistics institute Friday reported that February consumer price inflation ended the month up 0.44%, only slightly higher than analyst estimates of around 0.41%. The monthly result brought 12-month inflation to 3.02%, a figure well below the country's official year-end target of 4.5%.

At the end of trading Friday power sector companies were among advancers, with Eletrobras up 3.2%; Celesc up 0.6%; and Cemig up 1.9%.

Mexico's stocks ended the week on a high note, extending its rally for a second straight day Friday.

The benchmark IPC index of 35 most-traded issues climbed 332 points, or 1.2%, to 27, 106.52. That followed a 2.3% gain on Thursday and was the IPC's highest close since the 5.8% plunge on Feb. 27 -- the biggest drop in nearly seven years.

The local market has been very volatile in recent weeks, rocked by global market movements, though market participants say the sense of risk-aversion has started to ease.

Mexican stocks gained in volatile trading Friday, after the release of better-than-expected local inflation data and a U.S. employment report in line with expectations. Mexico is highly dependent on the U.S. economy, which absorbs over 85% of Mexico's exports.

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